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NCC secures orders worth `815cr
Nagarjuna Construction Company (NCC) has secured new orders aggregating to `815cr
from different clients. One of the orders valued at `215cr is from Rail Vikas Nigam Ltd.,
Bhubaneswar, with construction period of 36 months. The second order worth `119cr is
from City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO), which
involves construction of elevated via-duct road. The expected execution period is 24
months. Another order worth `119cr from Bangalore Development Authority is for the
construction of flyover and underpass roads. The expected construction period is
15 months. Further, the company has received orders worth `322cr from various other
clients. With these new orders, the company’s outstanding order book now stands at
~`17,000cr (3.4x FY2011 revenue).
We have valued NCC on an SOTP basis with a target price of `109/share by assigning
10x FY2013E earnings (standalone). The company’s real estate venture has been valued
on P/B basis and its BOT assets have been valued on DCF basis. At the CMP of `85,
the stock is trading at 11.2x FY2013E P/E and 0.8x FY2013E P/B. Owing to a diversified
order book along with exposure to most of the growth sectors and attractive valuations,
we maintain our Buy recommendation with a target price of `109.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
NCC secures orders worth `815cr
Nagarjuna Construction Company (NCC) has secured new orders aggregating to `815cr
from different clients. One of the orders valued at `215cr is from Rail Vikas Nigam Ltd.,
Bhubaneswar, with construction period of 36 months. The second order worth `119cr is
from City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO), which
involves construction of elevated via-duct road. The expected execution period is 24
months. Another order worth `119cr from Bangalore Development Authority is for the
construction of flyover and underpass roads. The expected construction period is
15 months. Further, the company has received orders worth `322cr from various other
clients. With these new orders, the company’s outstanding order book now stands at
~`17,000cr (3.4x FY2011 revenue).
We have valued NCC on an SOTP basis with a target price of `109/share by assigning
10x FY2013E earnings (standalone). The company’s real estate venture has been valued
on P/B basis and its BOT assets have been valued on DCF basis. At the CMP of `85,
the stock is trading at 11.2x FY2013E P/E and 0.8x FY2013E P/B. Owing to a diversified
order book along with exposure to most of the growth sectors and attractive valuations,
we maintain our Buy recommendation with a target price of `109.
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